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adoni [48]
3 years ago
9

Mains Corporation owns equipment with a cost of $290,000 and accumulated depreciation at December 31, 2014 of $150,000. It is es

timated that the machinery will generate future cash flows of $165,000. The machinery has a fair value of $115,000. Mains should recognize a loss on impairment of...(a)$0.(b)$15,000.(c)$25,000.(d)$35,000.
Business
1 answer:
Firlakuza [10]3 years ago
5 0

Answer:

(a)$0

Explanation:

Since the book value is less than the generated future cash flows so there would not be any loss on impairment of the asset

The book value is computed below

= Owns value - accumulated depreciation

= $290,000 - $150,000

= $140,000

The book value is $140,000 and the generated cash flows are $165,000. So, no value would be recognized

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Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking
SVEN [57.7K]

Answer:

lead generation.

Explanation:

Lead generation -

It refers to the process of generating the interest of consumers regarding any goods and services , is referred to as lead generation .

The method is useful in the field of marketing , as it increases the possibility of the consumers buying the product and hence , increases the sale , which in turn is profitable to the company .

The method of lead generation is the part of advertizing or publicizing the goods and services .

Hence , from the given scenario of the question ,

The correct answer is lead generation .

7 0
3 years ago
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for
Mars2501 [29]

Answer:

1. $3,799,988

2. $3,419,989

Explanation:

1. Semiannual lease payment = $468,683

Total semiannual payments = 5*2 = 10

Incremental borrowing rate = 10%, 5% semiannual

Present value of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 10 periods at 5%

= $468,683 * 8.1078 = $3,799,988.0274 ≈ $3,799,988

2. Semiannual payment on 30.06.2021 = $468,683

Pretax amount of liability on 30.06.2021 = ($ 3,799,988.0274 - $468,683) = $3,331,305.0274

Interest expense for 31.12.2021 = $3,331,305.0274 * 5% = $166,565.25137

Semiannual lease payment on 31.12.2021 = $468,683

Pre tax amount for liability December 31, 2021 = $3,331,305.0274 + $166,565.25137 - $468,683 = $3,029,187.2788

Depreciation on right to use assets for 2021 = ($3,799,988.0274 ÷ 5) * (5/10)= $379,998.80274

Pre tax amount of right to use asset to be reported for 2021 = $3,799,988.0274 - $379,998.80274 = $3,419,989.2247 ≈ $3,419,989

5 0
3 years ago
Price ceilings may be imposed if: A. suppliers can make strong moral or political arguments for higher prices. B. demanders can
Nat2105 [25]

Answer:

C. Demanders can make strong moral or political arguments for lower prices.

Explanation:

This explained as a legal price limit set by the government on the sellers in a way to be a protection means to the buyers. This will general control some serial hike and outrageous price on some goods and services.

Its effects are of different types; firstly, price ceiling can create huge market efficiencies in a long run and also causes hoarding of products and springing up of black markets and other hook and crook forms of marketing and this is known to cause unrest in the supply side. When these keeps pulling on, it has a negative effect on the economy of the said nation.

6 0
3 years ago
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat
GalinKa [24]

Answer:

The cost per equivalent unit of conversion is $2.56

Explanation:

Beginning inventory = 92,000 units

Units started and completed = 262,000 units

Units completed and transferred out: 354,000 units

Ending Inventory: 36,000 units

Equivalent unit of materials = (92,000 × 20%) + 262,000 + (36,000 × 30%)

= 291,200 units

Direct materials = $744,600

Cost per equivalent unit of materials = Direct materials ÷ Equivalent unit of materials

=$744,600 ÷ 291,200 = $2.56

4 0
2 years ago
Read 2 more answers
If someone received cash 2 700 for sold goods, which journal account should be created?
Evgesh-ka [11]

Answer:

cash a/c dr

To sales a/c

( being goods sold in cash )

5 0
3 years ago
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